Sinn Fein president Mr Gerry Adams sparked controversy when he praised the "extraordinary calibre" of IRA volunteers last night.
Mr Adams was guest speaker at the dinner in Dublin to commemorate members of the IRA and Sinn Fein who have died in the 30-year conflict in the North.
He praised IRA or republican members who died during the Troubles as having fought for a "noble cause". Speaking to an audience of up to 2,500 people, Mr Adams pledged to persevere the goal of "freedom".
Against a backdrop of the 365 names of the IRA dead, Mr Adams said: "Many died on active service against the British forces, some at the hands of loyalists, others as a result of tragic accidents . . . They were prepared to put their lives on the line in pursuit of that noble cause."
He praised the volunteers as one of the most effective guerrilla armies in the world.
He also reached out to those who had been killed and maimed by IRA terrorists saying: "There would be no peace process if it were not for the IRA."
But his words have drawn harsh criticism from unionists politicians and relatives of those killed in IRA and republican attacks.
Mr William Fraser, whose father and four other family members were victims of IRA, said: "My feeling is one of disgust that this is actually taking place, the fact that so many terrorists are going to be celebrating what they call a war."
Ulster Unionist MP, Mr Jeffrey Donaldson, said the event rubbed salt into the wounds of families who had suffered through IRA actions.
"This kind of glorification or feast of IRA members is an insult to the memories of the innocent victims they killed . . . It is totally inappropriate for them to dine out on exploits of their deeds, while people sit in their homes living with the pain of the loss of their loved ones."
Many have speculated the event was intended as a morale booster aimed at soothing the nerves of hardliners uneasy about decommissioning moves. But Mr Adams said the idea for the dinner was more than a year old and had arisen out of the developing peace process.
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